Salary Transfer Loan (STL)

A Salary Transfer Loan (STL) is a mortgage where your monthly salary is credited to an account with the same bank providing the mortgage. The overall mortgage process remains the same. However at the time of Final Offer Letter (FOL) and contract signing, a salary transfer letter will need to be submitted in the bank’s required STL format, including the required indemnity clause.

During the mortgage tenure, if you are to change employers, the bank will need to be updated with your new employment details. Depending on the bank’s requirements, you will be asked to share an updated salary certificate, employment contract and a new salary transfer letter from the new employer. If your employment ends or your salary is no longer being credited to the bank, the bank may temporarily restrict access to your end-of-service benefits while your new employment details are being reviewed and the salary transfer arrangement is updated.

If at any point during the mortgage tenure you wish to transfer your salary to another bank, you would be required to inform your existing mortgage bank. As the mortgage was initially approved under STL terms, the existing bank will then allow the mortgage to be converted to Non-Salary Transfer Loan (NSTL) terms. If this is not possible or the revised terms are not suitable, the alternative would be to buyout/ switch the mortgage to another bank under NSTL terms and conditions.